Internal Transfers Between Business Units

Overview

Special care must be taken when creating internal transfers between business units (BU).  Internal transfers between BUs are typically required for transactions such as moving funds between projects, sharing expenses, or charging out and recovering costs for recharge centers.   These transfers can be generated by both central units or by individual departments by using the matched pair concept.

(Prior to March 31, 2015, similar transactions would have been accomplished using the matched pair accounts 66299 & 46299, but the activity in these accounts combined different types of transactions and was therefore difficult to interpret. These accounts will become inactive by the end of FY15.)

In order to record internal transfers between business units, it is necessary to know if the BUs on the transaction are consolidated or non-consolidated, or if the initiating unit is an auxilary enterprise.  Knowing this will enable you to choose the appropriate transaction type below, allowing you to select the correct matched pair accounts for recording the transaction.  

* A business unit is a legal entity for which financial statements are produced.  Business units can either be consolidated (units for which the University maintains managerial and financial control), or non-consolidated.  View list of business units >>

 

Three Types

Internal transfers between business units can be separated into the following three types:

 

  • Transactions between Two Consolidated Business Units – This type is used when transacting between consolidated business units or within a single, non-consolidated business unit.  Allowable account combinations are 7-series accounts, recharge / recovery accounts (69xxx series), and the same account on both sides of the transaction.  This encompasses the following types of transactions:
     
    • • Fund transfers, overdraft clearing, etc., between consolidated business units or within a single non-consolidated business unit, including most 7-series internal transfers 
    • • Most recharge / recovery activity between consolidated business units or within a single non-consolidated business unit, i.e. CUIT charges, Facilities charges, and smaller recharge center activity
    • See Job Aid - Example 1 >>
  • Transactions between a Consolidated and a Non-consolidated Business Unit – This type is used when transacting between a consolidated business unit and a non-consolidated business unit or between two non-consolidated business units.  Allowable account combinations are listed in  the Group Inter-Consolidation Matched Pairs document and include specific 6-series expense accounts for each Budget Category and matching 4-series accounts for the revenue (recovery).  This encompasses the following types of transactions:
    • • Fund transfers, overdraft clearing, etc., between a consolidated business units and a non-consolidated business unit or between two non-consolidated business units.  
    • • Most recharge / recovery activity between a consolidated business units and a non-consolidated business unit or between two non-consolidated business units, i.e. CUIT charges, Facilities charges, and smaller recharge center activity.
    • See Job Aid - Example 2 >>

 

  • When the Initiating Unit is an Auxiliary Enterprise (Housing, Dining, Health Services, UEM, Faculty House, Faculty Club, etc.) – This type is used when an authorized auxiliary group is charging another unit for services.  Authorized auxiliary groups should use their standard match pair accounts to charge for services rendered regardless of the business units on the transaction.  Here are some examples:

 

  • Note: Management Only Transfers (MOT) are system generated entries that redistribute a project's fund balance based on the owning department.  Since these entries are not entered by users, a MOT transaction example is not included in the job aid.  For more information contact the Controller's Office.